A Twitter announcement by entrepreneur Elon Musk might be yet another blow to Tesla which has been grappling with slowing production and possibly a failed attempt at privatization. The car maker’s autonomous vehicles’ prices will "increase substantially over time”.
The public can expect a rise in prices on May 1 after the firm showcases its autonomous driving proficiency at an investor meeting on April 22.
Currently a self-driving car will cost $5,000 if the customer wants to gradually add complete autonomy when placing an order and $7000 if coveted at a later stage. Despite no confirmation of the price hike, Musk claims that they are looking to “appreciate assets” and it would be “something like” the $3,000 mark as proposed by a Twitter follower.
The introduction of the Autopilot mode and new full self-driving computer system has contributed to the price surge. Now a standard feature in the product specification, Autopilot is an advanced driver assistance system that offers a combination of adaptive cruise control and lane steering. However, it is not yet clear if all new vehicles will be subjected to the new computer installation.
Adding onto the existing features of Navigate, Summon and Autopark, the firm is also working on full self-driving (FSD) feature ’s ability to recognize and respond to traffic lights, stop signs and driving automatically on streets.
Tesla vehicles are not self-driving yet and Musk has been publicly promising the dream for years now. After the company’s stock declined by 19.3% this year and shares were down by 2.77%, investors appear concerned that demand for their products may be fading, alongside the possibility of a distressing relationship with battery producer Panasonic. Currently, the electronic corporation’s rate of battery-cell production has held back output for Tesla’s Model 3 sedan.
Customers began to fund the FSD in late 2016, when Tesla activated production of the electric automobiles. According to the automaker, the firm is expected to release increasingly more advanced software updates that use more power out of the new computer, ultimately leading to fully functional self-driving capability by the end of the year.